© pichetw dreamstime.com
Precision Optics Corporation acquires Ross Optical Industries
Precision Optics Corporation, a designer and manufacturer of advanced optical instruments for the medical and defense industries, has completed the acquisition of certain assets of Ross Optical Industries, Inc. (Ross Optical), a privately-held company based in El Paso, Texas.
The acquisition extends Precision Optics product offering to include a wider range of lens and optical system sizes and expands its presence in the U.S. defense sector. Further, it allows the combined company to leverage Precision Optics’ technical proficiency in offering end-to-end solutions, from design through production, to the Ross Optical customer base, increasing its value-add capabilities. Ross Optical had revenues of USD 3.9 million and net income of USD 410,000 for the 12-month period ended December 31, 2018. As part of the transaction, Precision Optics is acquiring slightly over USD 1 million of net working capital. The total purchase price is up to USD 2 million. “The strategic acquisition of Ross Optical is an important addition to the Precision Optics portfolio which broadens our capabilities and accelerates our efforts to gain economies of scale. We are excited to bring the operations and employees of Ross Optical to the Precision Optics family," says Joe Forkey, President and CEO of Precision Optics, in a press release. "With this acquisition, we see a number of opportunities to leverage our respective strengths to expand existing customer relationships, and to develop new ones, based on the broader offerings of the combined company. This transaction represents a real milestone for Precision Optics and provides a great base for future growth.” Divi Mangadu, who has been Ross Optical’s long-standing President, has agreed to continue in that role for a seamless transition. Precision Optics will continue to operate the acquired entity under Mr. Mangadu’s leadership in its existing facility in El Paso, Texas and anticipates significant cooperation between sales, engineering and manufacturing teams of the two operations.